STEAMBOAT ROCK -- Dried distiller's grain likely will again be available at Pine Lake Corn Processors by the end of the month, according to President Larry Meints.

An explosion last December destroyed the distiller's grain dryer at the ethanol plant. No one was injured, but the blast shook people in their beds up to a mile away, Meints said, and caused millions of dollars in damage.

Distiller's grain is a byproduct of the ethanol process used as livestock feed. Since the accident, Pine Lake only has been able to offer wet distiller's grain to livestock producers. The wet feed doesn't keep as long and, consequently, is less valuable.

"We've had to sell it at a discount, a virtual fire sale. Some of it is going to southern Iowa and Missouri, and they need a discount to make up for the transportation costs," Meints said.

Because wet distiller's grain must be fed quickly to prevent spoilage, large beef feedlot operators are more apt to buy. In Northeast Iowa, few operations are large enough to make shipments worthwhile.

The accident was blamed on a buildup of natural gas in the dryer when a valve failed to shut properly, Meints said. Snow piled up in front of the dryer's air intake, and the equipment shut off automatically. After employees cleared the snow and turned on the dryer, it exploded, Meints said.

To know the company will be operating at maximum efficiency again soon is welcome news, Meints said. Making money with corn prices near $6 per bushel is difficult enough without the added burden of no income from dried distiller's grain.

Meints noted the plant purchased much of its corn prior to the run-up to record prices.

"We're still operating at a profit yet. We have business interruption insurance that will help," he added.

Pine Lake still is considering a $16.8 million expansion project, which will separate corn oil and produce high protein meal. The expansion is expected to create 11 jobs paying an average wage of $16.90 per hour.

Contact Matthew Wilde

at (319) 291-1579

or matt.wilde@wcfcourier.com.